Professor of Finance
Research Expertise: Private Equity, Venture Capital, Impact Investing, Social Entrepreneurship, Finance of Innovation, Corporate Finance.
As an applied financial economist, Professor Ayako Yasuda studies sectors that are critical engines of growth and innovation for the economy, including venture capital, impact funds, social entrepreneurship, private equity, and long-horizon institutional investors. In most of Yasuda’s work, she combines carefully assembled novel data with rigorous statistical methodology to bring unique new insights.
Yasuda’s research has been published in top journals such as Journal of Finance, Journal of Financial Economics, and the Review of Financial Studies. She co-authored an MBA course textbook Venture Capital and the Finance of Innovation, which has been adopted at Harvard, Yale, Princeton, Chicago, Dartmouth, Duke, New York University, University of California (multiple campuses), Caltech, and University of Pennsylvania (Wharton), among others.
Yasuda has received numerous research grants, including the recently awarded NBER Entrepreneurship Grant on her project “Impact Productivity Measure: A Transformative Performance Metric for Social Entrepreneurship”, which is supported by the Kauffman Foundation. Yasuda earned her Ph.D. in economics from Stanford University, from which she also graduated Phi Beta Kappa with a B.A. in quantitative economics.
Q&A with Associate Professor Ayako Yasuda
Academic Coordinator, CFO for Technology Industry Immersion
Leading the new CFO for Technology Industry Immersion, Yasuda shares how the course will give students a leg up in lead financial roles at fast-moving tech firms.
Moskowitz Prize Winners on Why There’s Room for Innovation in Impact Investing
Q&A with Professor Brad Barber and Associate Professor Ayako Yasuda
Demand for impact investing alternatives—venture funds and private equity—is outstripping supply for investors, at a time when much more capital is needed to solve the world’s most pressing problems.
Recent research by Professor Brad Barber and Associate Professor Ayako Yasuda shows the rate at which investors choose impact funds is 14% greater than the rate at which they choose traditional venture capital funds.
Impact Investing “Supply” Failing to Meet Demand
Moskowitz Prize Winners: Professor Brad Barber and Associate Professor Ayako Yasuda Study Shows Europe’s Demand for Impact Funds Over Traditional Investments Three Times Higher Than in North America
The demand for impact investing alternatives is outstripping the available supply of such choices for investors, according to a new study co-authored by Professor and Associate Dean Brad Barber and Associate Professor Ayako Yasuda that was awarded UC Berkeley’s 2016 Moskowitz Prize for Socially Responsible Investing during a special ceremony Nov. 10 at the 27th annual SRI Conference in Denver.
Star Analysts’ Stock Picks Pay Off
New research shows that All-America Research Team-ranked sell-side equity analysts make better buy and sell calls than their peers.
Although institutional asset managers that participate in the voting for the All-America Research Team say they prize equity analysts most for their industry knowledge and company fundamental analysis, Hodess says the importance of stock picking shouldn’t be underestimated.
Star Stock Analysts’ Tips Are Worth a Lot
Study Finds a Real Advantage, but Investors Have to Act Right Away
Star stock pickers really can beat their peer analysts, but you’ll have to trade fast to profit on their recommendations, Professor Ayako Yasuda tells the Wall St. Journal, based on her research.
Attention from venture capitalists can be quite flattering to a young startup, but the question of whether to get involved with professional investors is ultimately one of the most important decisions that an entrepreneur must make. Professor Yasuda comments in this timely Washington Business Journal story.
Associate Professor Ayako Yasuda shares the pros and cons of when an entrepreneur should or shouldn’t seek venture capital financing.
Professor Ayako Yasuda
Co-authors: Massimo Massa at INSEAD and Lei Zhang at Nanyang Technological University
The Financial Principles Every Venture Capitalist Needs To Master!
This is the second annual symposium on financial institutions and intermediaries. Co-chaired by Professor Yasuda and Professor Edelen, this year’s symposium features guests from around the world to discuss key topics on private equity.
Four faculty members have received prestigious fellowships for their research productivity, teaching excellence and dedicated service to the School.
Associate Professor Greta Hsu, a specialist in organizational behavior and economic sociology, was awarded the Seeman Faculty Term Fellowship. The fellowship is made possible by a generous gift from alumna May Seeman ’89 and her husband, Philippe.
This recent article cites Professor Ayako Yasuda’s 2010 study
“The Economics of Private Equity Funds” in which she and her
co-authors found that the buyout business is more scalable
the venture capital business, and that past success has a differential impact on the
terms of their future funds.
This article about the venture capital industry in the current economic and political climate cites Associate Professor Ayako Yasuda’s 2010 study “The Economics of Private Equity Funds” which found that private-equity firms now get around two-thirds of their revenues from fixed fees, regardless of performance.
This article about the value of the private equity industry cites the research of Associate Professor Ayako Yasuda, who found in her study “The Economics of Private Equity Funds” that among their sample funds, about two-thirds of expected revenue comes from fixed-revenue components that are not sensitive to performance.
In this paper, Associate Professor Ayako Yasuda and co-author Andrew Metrick from the Yale School of Management review the theory and evidence on venture capital (VC) and other private equity: why professional private equity exists, what private equity managers do with their portfolio companies, what returns they earn, who earns more and why, what determines the design of contracts signed between (i) private equity managers and their portfolio companies and (ii) private equity managers and their investors (limited partners), and how/whether these contractual designs affect outcomes.
The Role of Institutional Investors in Propagating the Crisis of 2007-2008
Journal of Financial Economics, 2011
Using a novel data of institutional investors’ bond holdings, Associate Professor Ayako Yasuda and co-authors Alberto Manconi from Tilburg University and Massimo Massa from INSEAD examine a transmission of the crisis of 2007-08 from the securitized bond market to the corporate bond market via joint ownership of these bonds by investors.
The authors posit that, ceteris paribus, corporate bonds held by investors with high exposure to securitized bonds and liquidity needs experience greater selling pressure and price declines (yield increases) at the onset of the crisis.
- The NBER (National Bureau of Economics Research) Entrepreneurship Grant “Impact Productivity Measure: A Transformative Performance Metric for Social Entrepreneurship” supported by the Kauffman Foundation.
- Moskowitz Prize for Socially Responsible Investing, University of California, Berkeley Center for Responsible Business.
by Jacqueline Romo
Assistant Professors Ayako Yasuda and Roger Edelen recently teamed up to organize the UC Davis Symposium on Financial Institutions & Intermediaries 2011, a one-day conference that brought more than two dozen leading scholars and practitioners to Gallagher Hall on April 1.
This first annual event focused on the nexus of mutual and hedge funds, drawing on the expertise at the School. “Roger and I picked a topic that not only showcased the GSM finance faculty, but one that would encourage engagement from practitioners and academicians alike,” explained Yasuda. “This invitation-only event brought together people knowledgeable about intermediaries from very different perspectives.”
This article analyzes the economics of the private equity industry using a novel model and dataset. Metrick and Yasuda obtain data from a large investor in private equity funds, with detailed records on 238 funds raised between 1993 and 2006. They build a model to estimate the expected revenue to managers as a function of their investor contracts, and test how this estimated revenue varies across the characteristics of our sample funds.
What caused corporate bond yields to balloon as the financial crisis deepened in 2007 and 2008?
This article cites Associate Professor Ayako Yasuda’s study “The Behavior of Intoxicated Investors: The Role of Institutional Investors in Propagating the Crisis of 2007-2008,” which found that corporate bonds held by investors that had high exposures to securitized bonds experienced greater price declines in late 2007 and 2008.
Having grown steadily over the past three decades, private equity funds worldwide today manage $1 trillion in capital raised from retail, individual and institutional investors. They play an increasingly important role as financial intermediaries in addition to their significant day-to-day involvement as company board members and advisors. Yet relatively little is known about the industrial organization of these various funds.
The Effectiveness of Reputation as a Disciplinary Mechanism in Sell-Side Research
The Review of Financial Studies, 2009
In this study, Associate Professor Ayako Yasuda and co-author Lily Fang from INSEAD examine whether the quality differentials in earnings forecasts between reputable and non-reputable analysts vary with the severity of conflicts of interest.